CO2 dump approved: Chevron Australia puts cost for storage scheme and first 10 years of operations at $850 million

Posted by gmarkets on 19 September, 2007

Chevron Australia general manager Colin Beckett said his company’s Barrow island project, to put carbon dioxide underground to reduce greenhouse gas emissions, would be larger than any other geosequestration scheme currently contemplated or in production, reported The Mercury (8/9/2007, p. 15).

Operational and environmental protection schemes: Chevron said its system would reduce greenhouse gas emissions by 120 million tonnes over the life of the project, by injecting carbon dioxide 2.5km below the island. “We published a figure of $850 million as being the cost for the storage scheme and first 10 years of operations,” said Becket. In addition to establishing the geosequestration system, the joint venture partners – Chevron, ExxonMobil and Shell – must protect the unique biodiversity of the island and surrounding marine environment.

Three point environmental protection plan: Western Australian Environment Minister David Templeman said the proponents had accepted the conditions, which were one part of a three point environmental protection plan including an additional $60 million commitment by the joint venture to conserve the flat-back turtle population and protect other endangered species. The final conditions included a requirement that the companies submit annual audit compliance and environmental preformance reports. Last year, the WA Environmental Protection Authority rejected environmental approval for the construction of a gas processing plant on Barrow Island.